ESOS phase 2

ESOS Phase 2 The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large organisations based in the UK. It was first implemented in 2014 in response to the EU Energy Efficiency Directive and has four phases. We are currently in Phase 2, with Phase 1 having run between 31 December 2014 and 5 December 2015. ESOS requires organisations that meet the qualification criteria to audit and report on at least 90% of their energy usage to The Environment Agency every 4 years.

What is the purpose of ESOS? ESOS is designed to give organisations the opportunity to conduct an in-depth review of their energy use in order to identify ways to improve energy efficiency. This allows businesses to reduce their usage and costs whilst helping to tackle climate change and lead the UK towards a higher level of energy security.

The deadline for complying to ESOS Phase 2

How do I know if I qualify?

With each ESOS compliance phase there are three key dates you need to be aware of: -- The qualification date -- The compliance period -- The compliance deadline See the timescale table under “Your step by step guideline to ESOS Phase 2 compliance.”

To qualify, you must meet the below criteria for two consecutive accounting periods working back from the qualification date. For ESOS Phase 2, this is 31 December 2018. The criteria are: - Over 250 employees in the UK or - An annual turnover exceeding €50m and a balance sheet exceeding €43m.

ESOS applies to large UK enterprises and their corporate groups. It mainly affects private businesses but can also be applicable for not-for-profit organisations and any other non-public sector enterprises that are large enough to meet the qualification criteria. Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking.

If your organisation is very close to the qualification threshold or has substantially increased or decreased in size in recent years, read the full ESOS guideline which includes additional information on how to assess if you qualify. Go to www.gov.uk and search for “Comply with ESOS”.

Public sector organisations do not usually need to comply with ESOS. For more information on organisations that do not need to comply see section 1.2 of the full ESOS guideline.

If the deadline is in 2019, why should I act now?

There are several advantages to starting your ESOS Phase 2 assessment today, which include: -- Make savings sooner By taking the opportunity to identify and achieve the energy and cost savings from the ESOS audits now, you can reap the benefits of increasing your energy efficiency more quickly.

-- Guarantee access to a Lead Assessor As the deadline draws closer the demand for Lead Assessors will surge. Make sure you don’t get caught short by securing your Lead Assessor as soon as possible.

-- Budgetary ease Act now and spread the cost of auditing across multiple financial years

Our organisation became ESOS compliant in 2015.

Why do we need to carry out another assessment?

Organisations that qualify for ESOS must carry out an assessment every 4 years (see our timescale guide on the next page). The compliance date for Phase 1 was 5 December 2015, and the deadline for Phase 2 runs between 6 December 2015 to 5 December 2019. Organisations do not need to pre-register with the Environment Agency but must notify the Environment Agency by the set deadline that they have complied with their ESOS obligations.

The initial assessment include audits of the energy used by buildings, industrial processes and transport to identify cost-effective energy saving measures. Once the assessment is complete, it needs to be verified by a qualified Lead Assessor – Advantage Utilities can help you find one.

How Advantage Utilities can help you Collecting quality data is key in the success of your ESOS compliance. You need the right team and the right software to know exactly how much energy you are using at all your sites, what factors are affecting your energy usage and how much it’s costing you.

Luckily, Advantage Utilities have access to just the tool you need to collect ultra-precise data to meet your auditing requirements — our premium data collection software for all meter types Advantage Analytics.

From large electricity supplies to sub-metering of specific equipment, and even gas metering with added Automatic Meter Reading, Advantage Analytics gives you ultra-accurate data into your usage which you can turn into actionable insights.

Call us on 0207 371 5360 or speak to your Account Manager today for a complimentary product demonstration.

Your step by step guideline to ESOS Phase 2 compliance Timescale Qualifying organisations will need to reassess their ESOS compliance every 4 years in accordance with the following timescale:

Phase

Qualification date

Compliance period

Compliance date

1

31 December 2014

17 July 2014 - 5 December 2015

5 December 2015

2

31 December 2018

6 December 2015 - 5 December 2019

5 December 2019

3

31 December 2022

6 December 2019 - 5 December 2023

5 December 2023

4

31 December 2026

6 December 2023 - 5 December 2027

5 December 2027

Completing your assessment There are two main stages to completing your ESOS assessment: 1. Assessing your total consumption. At this stage you are gathering the data required for the audit.

2. Auditing your data. Understanding. your usage and identifying where efficiency savings can be made.

Stage 1, action 1: Calculate your total consumption Simply put, you need to measure all energy that your business consumes in its day to day activities.

This includes energy for your buildings, industrial processes and transportation.

There are no fuel type exemptions from ESOS, so be sure to measure the consumption of all forms of energy. This includes energy from combustible fuels (such as gas), renewable energy, steam, heat and electricity from any other sources (including electricity generated on-site).

You’ll need 12 consecutive months of data that includes the qualification date (for ESOS Phase 2, that’s 31 December 2018), but not the compliance date. For example, Data collected between June 30 2018 – May 30 2019 would be permissible, but data collected between December 10 2017 – November 10 2018 would not be. You may not use any data you collected for your ESOS Phase 1 assessment.

Stage 1, Action 2: Define your “de minimis” ESOS mandates that you carry out energy audits for 90% of your total energy consumption.

That means that you have a decision to make about which 10% of your consumption you exclude.

This could be an entire utility, a particular site, multiple sites or on an asset or activity basis.

The energy you are choosing to exclude is referred to as your ‘de minimis energy consumption.’

With Advantage Analytics, you can identify the part of your business it would be most efficient to define as your de minimis.

Stage 2, Action 1: Find a Lead Assessor Lead Assessors will be responsible for verifying your calculations of your total energy consumption, reviewing your de minimis and checking that you are compliant via your audits. Your ESOS audits can be carried out by your Lead Assessor but do not have to be, although your Lead Assessor will have to sign off that your audits meet the minimum requirements.

It is very important to find the most suitable auditor for your business and sector so you can get relevant and specific recommendations. You will need to select your Lead Assessor from the approved register of ESOS Lead Assessors by going to www.gov.uk, searching for ‘ESOS’, and clicking the “Approved registers of ESOS lead assessors” link on the page.

Advantage Utilities are well positioned to help you find a Lead Assessor who best suits your business needs.

Stage 2, Action 2: Audit your energy use and identify cost-effective saving measures Once you have compiled your data you can now begin working closely with your Lead Assessor, who will take you through the process of auditing and reporting your energy consumption. As well as verifying your data’s validity, your Lead Assessor will also be able to help you identify where and how you can make efficiency savings.

The better the quality of your data, the easier your assessment and finding efficiency savings will be. Advantage Analytics is the powerful tool you need that will make the auditing process simple and streamline.

Stage 2, Action 3: Get sign off on your energy saving recommendations from a director When you’ve finished your ESOS assessment, board level director(s) will have to sign off on your compliance and review the cost-effective energy savings that have been identified. This is a great opportunity to decide on how you will implement your energy efficiency measures.

Stage 2, action 4: Notify the Environment Agency of your compliance The last thing to do is to submit your ESOS assessment to the Environment Agency. The notification includes details about your organisation and how it has complied — you do not need to provide the energy data. You assessment is submitted here: https://esos_notification.snapsurveys.com/esos

What to do next The most important step you can take is to ensure that you have the right tool to collect your data.

Advantage Analytics can help you get started on your ESOS process right away. Advantage Analytics provides you with the platform you need to collect accurate, clean and relevant data to ensure you are on the right path towards ESOS Phase 2 compliance.

Call us on 0207 371 5360 or speak to your Account Manager today for a complimentary product demonstration.